This paper concentrates on the primary theme of Matt Holland, president of Holland Electronics, was concerned in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
Matt Holland, president of Holland Electronics, was concerned about the end-of-the year marketing report that he had just received. According to Emily Jiminez, marketing manager, a price decrease for the coming year was again needed to maintain the company’s annual sales volume of integrated circuit boards (CBs). This would make a bad situation worse. The current selling price of $18 per unit was producing a $2-per unit profit – half the customary $4-per unit profit. Foreign competitors keep reducing their prices. To match the latest reduction would reduce the price from $18 to $14. This would put the price below the cost to produce and sell it. How could the foreign firms sell for such a low price? Determined to find out if there were problems with the company’s operation, Matt decided to hire Bunney Schmidt, a well-known consultant who specializes in methods of continuous improvement. Bunney indicated that she felt that an activity-based management system needed to be implemented. After three weeks, Bunney had identified the following activities and costs: